Outward Remittances - North America
North America- Total transaction value in the Outward Remittances market is projected to reach US$******bn in ****.
- Total transaction value is expected to show an annual growth rate (CAGR *********) of ****% resulting in a projected total amount of US$******bn by ****.
- In the Outward Remittances market, the number of users is expected to amount to *****m users by ****.
Definition:
Remittances are fundamentally an international transfer of money, typically across international borders. Remittances can be viewed from two perspectives: Inward and Outward Remittances. Outward Remittances involves sending money to another country. The target users of these services are usually migrant population. The Outward Remittances market refers to the transfer of money from individuals or residents within a country to recipients abroad. This usually involves transferring money for various purposes such as education, medical expenses, or investments. It is driven by migrant workers, expatriates, or residents supporting family members, covering expenses, or investing in their home countries. Remittances have become a crucial and stable source of funds for many developing economies, often surpassing export earnings or foreign direct investment. However, measuring Remittances is challenging due to the large number of small, heterogeneous transactions conducted through various formal and informal channels. Informal Remittances often go unrecorded, making comprehensive data collection difficult. Some countries use a combination of direct reporting, surveys, and model-based approaches to estimate remittance flows, though the reliability of these estimates depends on the quality of input data and assumptions, which are often difficult to verify.Additional Information:
In theory, the Inward and Outward Remittances market values should balance out and be equal because remittances are financial flows between countries. However, practical issues such as data collection methods, informal channels, fees, and timing lead to a mismatch in the reported figures. The focus on Inward Remittances in developing countries, which rely heavily on these flows, often results in better tracking of inflows than outflows. The figures therefore differ in the respective markets.- Online Cross-border payments out of the selected region
- Personal transfers documented under the secondary income-category of the current account of a country's Balance of payments
- Compensation of employees including wages, salaries, and benefits of border, seasonal, and other nonresident workers (e.g., embassy staff), recorded under the primary income-category of the current account
- Cross-border payments via traditional service providers (banks, post offices & Western Union, MoneyGram)
- Online Cross-border payments into the selected region
- Payments via social networks
- Domestic payments and bill splitting services
Transaction Value
Users
Analyst Opinion
The Outward Remittances market is undergoing significant transformation, with digital solutions playing a pivotal role in reshaping the landscape. Traditional remittance methods, often slow and costly, are being replaced by more efficient digital platforms that offer faster transfer speeds, lower fees, and greater accessibility, especially for underserved regions. This shift is driven by increasing internet penetration, mobile technology, and the demand for more convenient financial services.
One major trend within this market is the growing importance of transparency and user experience. Digital platforms are offering real-time updates, better currency conversion rates, and simplified processes, enhancing customer trust and satisfaction. Moreover, cross-border payments are becoming more integrated with everyday financial activities, with users expecting seamless, mobile-first solutions. Regulatory support in many countries is also fostering innovation and competition within the remittances space, encouraging the entry of fintechs and reducing barriers to market entry. As a result, competition has intensified, leading to greater efficiency and lower costs for consumers.
While digital remittances are a significant driver of growth, the broader trend is toward a more user-friendly, cost-effective, and inclusive remittance ecosystem that aligns with the growing global demand for digital financial services. This evolution is making cross-border transactions faster, more reliable, and accessible to a wider range of people.
Methodology
Data coverage:
The data encompasses personal remittances as well as migrant stock data. Figures are based on "personal transfers" and "compensation of employees" recorded in the Current Account of the Balance of Payments framework, which records a country's transactions.Modeling approach / Market size:
Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data provided by the World Bank, annual market size estimates, country flow estimates, third-party reports, and publicly available databases. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, inflation rates, exchange rates, unemployment, consumer spending, internet penetration, and online banking penetration. This data helps us estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use multiple linear regression method to forecast future development. The main drivers are GDP growth rate, exchange rate fluctuation, inflation rate, and migrant population growth.Additional notes:
The outward remittances market uses calculations from the World Bank and its KNOMAD division as a base, including annual market size estimates, bilateral country flow estimates, and a database on remittances prices. In theory, inward and outward remittances should balance out and be equal because remittances are financial flows between countries. However, practical issues such as data collection methods, informal channels, fees, and timing lead to a mismatch in the reported figures. The focus on Inward remittances in developing countries, which rely heavily on these flows, often results in better tracking of inflows than outflows. The figures therefore differ in the respective markets. The market is updated twice a year in case market dynamics change.Finance
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